State Regulation of Accounting Practices and Municipal Borrowing Costs
Posted: 18 Jul 2014
Date Written: Summer 16, 1984
This article examines the association between state regulation of accounting practices and municipal borrowing costs. The results demonstrate that stringent accounting regulations do have an effect on borrowing costs after abstracting the effect of other explanatory variables. The direction of the observed effect is difficult to assess due to presence of multicollinearity in the model. However, lower borrowing costs are suggested by the analysis.
Keywords: State regulation of accounting practices, borrowing costs
JEL Classification: M41
Suggested Citation: Suggested Citation